Star 2026-02-24

As South Africans brace for Finance Minister Enoch Godongwana’s 2026 Budget Speech on Wednesday, the loudest tax debate may not be about rate hikes or a VAT shock but about something far quieter and far more pervasive: bracket creep. On the surface, this year’s Budget is expected to strike a reassuring tone. Economists at Nedbank on Monday said gross tax collections are running well ahead of projections, buoyed by improved economic activity and a powerful rally in commodity prices. Mining profits have surged as a result of high commodity prices, particularly gold, pushing up corporate income taxes while household consumption has supported personal income tax and VAT receipts. Most analysts agree a full VAT hike is unlikely. Instead, smaller indirect adjustments in fuel levies or excise duties may be used…

The Spar Group is navigating a turbulent period as it reveals plans to sell the Appleby Westward Group (AWG), its UK-based operation. This announcement comes on the heels of a significant leadership change, with CEO Angela Swartz resigning after a demanding tenure that commenced in early 2023. The share price reflected market trepidation, plunging by 6.7% on Monday to R78.21, markedly lower than the R142.48 recorded a year earlier. Following the company’s continuing pursuit to streamline operations, the AWG has been classified as a discontinued operation in its latest trading statement. The divestiture aims to bolster Spar’s financial health and refocus its efforts on its core Southern Africa market, where the company holds considerable competitive advantages. Last year saw the disposal of Spar Poland and Spar Switzerland, moves intended to…

The US proclamation issued on Friday introduces a 10% ad valorem duty for 150 days from 24 February US President Donald Trump’s decision to impose a temporary 10% import surcharge on most goods entering the United States has injected fresh uncertainty into global trade, currency markets and South Africa’s export outlook. The proclamation, issued on Friday under Section 122 of the Trade Act of 1974, introduces a 10% ad valorem duty for 150 days from 24 February. The White House argues the measure is necessary to address what it calls “fundamental international payments problems”, citing a $1.2 trillion goods trade deficit in 2024 and 2025, a current account deficit of 4% of GDP, and a sharply deteriorating net international investment position. The move follows a dramatic legal twist after the…

Boards face a dilemma with no perfect resolution. Intervene too late and they are condemned for missing the signals. Intervene too early, probe too deeply, and they risk being accused of overreach. This tension defines one of the most complex responsibilities in governance: deciding when there is enough information to justify action. The difficulty lies in the nature of uncertainty itself. Governance failure rarely announces itself through a single decisive event. It accumulates. Risk ratings shift. Control weaknesses recur. Cultural indicators soften. Strategic ambition is moderated. Regulatory correspondence increases. Performance variances are rationalised as temporary. Each signal, viewed in isolation, appears manageable. Taken together, they may reveal a trajectory that warrants intervention long before financial distress becomes visible. Boards receive far more than financial numbers. Audit committees review internal control…

The International Monetary Fund (IMF) has strongly reinforced the message that business has been consistently conveying: South Africa’s structural reform programme has the potential to deliver meaningful economic growth – as long as the country maintains the pace of reform implementation. In its recent Article IV consultation, the IMF said the economy stands to gain up to 9% in real output over the medium term, though this is not its baseline and consensus forecasts for 2028 remain at only 1.8% growth. It is important not to raise expectations; BLSA re-emphasises that the economic benefits of the reforms will take a long time to kick in fully, a message that is important to convey to the public, particularly in the context of widespread frustration over the lack of job opportunities for…

The latest Household Affordability Index released on Monday by the Pietermaritzburg Justice and Dignity Group (PMBEJD) brings good news for consumers. In February 2026, the average cost of the Household Food Basket decreased to R5 383,81, reflecting a month-on-month drop of R17,63 (-0,3%) compared to January 2026. While prices are still slightly higher year-on-year — up R70,59 (1,3%) — the monthly decrease offers welcome relief for households managing tight budgets. Mervyn Abrahams, Director at PMBEJD, said that the Household Food Basket shows that on average; food prices have come down marginally over the past month, and a little up from a year ago. “In February 2026, the Basic Nutritional Food Basket, using the same household size as tracked by the Household Food Basket, is R6 459,83. This shows that…